Showing Security Deposit statements

[NathalieLiuHiller]

Hi, I currently manage my own couple multi-unit buildings in Edmonton. Ever since I started, I have kept my tenants` security deposits in a separate Interest-bearing Business account. One of my tenants moved out and she is making a stink about how her deposits should have been placed in a trust account, etc. I already told her we did. I gave her the correct interest payments on her deposit, less damages, etc., plus a detailed move-out statement of account. But she is still insisting on my providing the copies of bank statements showing all the interests her security deposit earned during her tenancy period.

As far as I know and have read in RTA, we are only required to provide the statement outlining all the charges on tenant`s security deposits within 10 days of their move-out date. I am hesitant to give her copies of the bank statements due to privacy reasons. Is she even entitled to her requests of getting those bank statements? Is having a separate interest-bearing business account compliant to the rule of setting up the security deposits on a separate trust account?

Nathalie

 

[ZuzanaHaska]

QUOTE (NathalieLiuHiller @ Jul 13 2009, 05:38 PM) Hi, I currently manage my own couple multi-unit buildings in Edmonton. Ever since I started, I have kept my tenants` security deposits in a separate Interest-bearing Business account. One of my tenants moved out and she is making a stink about how her deposits should have been placed in a trust account, etc. I already told her we did. I gave her the correct interest payments on her deposit, less damages, etc., plus a detailed move-out statement of account. But she is still insisting on my providing the copies of bank statements showing all the interests her security deposit earned during her tenancy period.

As far as I know and have read in RTA, we are only required to provide the statement outlining all the charges on tenant`s security deposits within 10 days of their move-out date. I am hesitant to give her copies of the bank statements due to privacy reasons. Is she even entitled to her requests of getting those bank statements? Is having a separate interest-bearing business account compliant to the rule of setting up the security deposits on a separate trust account?

Nathalie


Hello Natalie,

I just received a letter from the Compliance officer from government office in Edmonton requesting proof of Trust account from my bank for my security deposits. They also included questionare and request for list of the tenants and amounts of their sec. deposits.
I do have separate account and always use the calculator on the government website to calculate proper amount of interest owing to the tenant. I went to the bank and spoke to my banker, but he said that proper Trust account must be set up by both parties and there is a cost and certain paperwork required. Basically, he told me that they cannot set up one Trust account for all of my tenants.
So I submitted everything that they requested and waiting for their reply. I would definitely like to see clarification on this.
As for my bank statements given to the tenants - no way!

Zuzana from Calgary

 

[JimWhitelaw]

Zuzana, what branch/dept of gov`t is requesting your info? What kind of compliance? Have you verified that they are legally entitled to the information they are asking for?

Nathalie, I agree w/ Zuzana. Tenant has no right to see your bank statements. As long as you`ve paid the required interest and shown a valid accounting of the deposit & expenses, you`ve done all you`re required to do.

 

[NathalieLiuHiller]

Thanks Jim and Zuzana. I have read previous postings that says a separate interest-bearing account is sufficient to comply with the rules so I wonder about Zuzana`s case. I hope you give us some updates Zuzana. Thanks!

Nathalie

 

[jwilbrin]

QUOTE (NathalieLiuHiller @ Jul 13 2009, 05:38 PM) Hi, I currently manage my own couple multi-unit buildings in Edmonton. Ever since I started, I have kept my tenants` security deposits in a separate Interest-bearing Business account. One of my tenants moved out and she is making a stink about how her deposits should have been placed in a trust account, etc. I already told her we did. I gave her the correct interest payments on her deposit, less damages, etc., plus a detailed move-out statement of account. But she is still insisting on my providing the copies of bank statements showing all the interests her security deposit earned during her tenancy period.

As far as I know and have read in RTA, we are only required to provide the statement outlining all the charges on tenant`s security deposits within 10 days of their move-out date. I am hesitant to give her copies of the bank statements due to privacy reasons. Is she even entitled to her requests of getting those bank statements? Is having a separate interest-bearing business account compliant to the rule of setting up the security deposits on a separate trust account?

Nathalie

I once had a tenant who felt she should have received more interest on her security deposit. I gave her a print out of the Government of Alberta Interest Table and Interest Calculator which showed the minimum required interest. That quickly put an end to her arguments.

Direct your tenant to the Government of Alberta website or provide her with a print out. here`s the link http://www.servicealberta.gov.ab.ca/1033.cfm

I absolutely would not show her your bank statements.

 

[mcgregok]

QUOTE (NathalieLiuHiller @ Jul 13 2009, 05:38 PM) Hi, I currently manage my own couple multi-unit buildings in Edmonton. Ever since I started, I have kept my tenants` security deposits in a separate Interest-bearing Business account. One of my tenants moved out and she is making a stink about how her deposits should have been placed in a trust account, etc. I already told her we did. I gave her the correct interest payments on her deposit, less damages, etc., plus a detailed move-out statement of account. But she is still insisting on my providing the copies of bank statements showing all the interests her security deposit earned during her tenancy period.

As far as I know and have read in RTA, we are only required to provide the statement outlining all the charges on tenant`s security deposits within 10 days of their move-out date. I am hesitant to give her copies of the bank statements due to privacy reasons. Is she even entitled to her requests of getting those bank statements? Is having a separate interest-bearing business account compliant to the rule of setting up the security deposits on a separate trust account?

Nathalie


It use to be that the landlord must deposit all security deposits in an interest-bearing trust account within 2 business days after collecting them. Maybe your tenent is trying to get all the deposit back if yu didi not follow the rule.

 

[Savard]

It sounds like your ex-tenant is attempting to use the trust account issue as leverage.
I am interested in a follow up to your post.
I agree with other posters. Simply provide a full summary of deductions, a print out of the Alberta Gov`t website that calculates the interest and mail your ex-tenant the check.

 

[ZuzanaHaska]

QUOTE (JimWhitelaw @ Jul 13 2009, 06:14 PM) Zuzana, what branch/dept of gov`t is requesting your info? What kind of compliance? Have you verified that they are legally entitled to the information they are asking for?

Nathalie, I agree w/ Zuzana. Tenant has no right to see your bank statements. As long as you`ve paid the required interest and shown a valid accounting of the deposit & expenses, you`ve done all you`re required to do.

Hello,

the request came from department of Compliance and Accountability - Audit and Investigation. ( Provincial Gov. Building in Edmonton )
I do not know if this was based on random investigation or this was complaint based.
They requested 1. Complete list of my current listing inventory and sec. deposit held ( incl. addresses, number of units, dollar amounts.2. Copy of the sec. deposit trust account bank statements and 3. Blank copy of current move - out inspection reports.

Plus there was questionare attached regarding the landlording practices and procedures.

So there you have it - your tax payer`s dollars in action !
The only problem that I see is that they will never investigate the shady slum landlords who slide under the radar, rent sub-standard properties to questionable tenants.

Zuzana
Linden Property Management Ltd.